Kapelko, M and Abbott, M (2017) Productivity growth and business cycles: Case study of the Spanish construction industry. Journal of Construction Engineering and Management, 143(5): 05016026, ISSN 0733-9364
Abstract
The purpose of this paper is to examine the degree of productivity change in the construction industry and relate these changes to variations in the business cycle. The activity of Spanish firms engaged in the construction of buildings, civil engineering, and specialized activities during the 2000s is used as a case study. Productivity change is estimated by creating a bilateral index using data envelopment analysis, complemented with bootstrapping. The results showed that Spanish firms in building construction experienced a fall in productivity because of a decline in technical and scale efficiencies, despite improvements in technology. The productivity change in civil engineering and specialized construction also was negative; however, the source of this decline was technical regress and negative scale efficiency change, although efficiency change and technology scale change contributed positively. The results further revealed that the firms reacted to the financial crisis of the late 2000s by introducing technological change, although the productive, technical, and scale efficiency changes all were negatively impacted during the economic downturn, suggesting an underuse of resources. This research contributes to the body of knowledge by being the first to analyze the impact of fluctuations in business cycles caused by the 2008 economic crisis on the productivity growth of construction firms representing three construction sectors, and by measuring productivity growth from a multidimensional perspective.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | bootstrap; data envelopment analysis; economic crisis; malmquist index; organizational issues |
| Index terms: | productivity, efficiency, case study, construction industry, data envelopment analysis, organizational issue, technological change, building construction, construction firm, construction sector, body of knowledge, variation |
| Subjects: | performance management, management, contractual condition, building construction, industry analysis, organization, business, data collection methods, innovation studies, data analysis and analytics, knowledge management |
| Topics: | Organizational Design, Contract Administration, Quality Management, Construction Technology, Business Strategy, Information Management, Research Practice |
| Descriptive scope: | 5 PCTEA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here